Wednesday November 17, 2021

 Support Grows for Cattle Market Agreement

U.S. Senators Deb Fischer (R-Neb.), Chuck Grassley (R-Iowa), Jon Tester (D-Mont.), and Ron Wyden (D-Ore.) are announcing growing support for the Cattle Price Discovery and Transparency Act.

The senators introduced the bill today along with Sens. Joni Ernst (R-Iowa), Mike Braun (R-Ind.) and Tina Smith (D-Minn.), Cindy Hyde-Smith (R-Miss.), Steve Daines (R-Mont.), Bill Cassidy (R-La.), and Ben Ray Lujan (D-N.M.).

“Now is the time to advance our bipartisan solution that will ensure every segment of the beef supply chain has the opportunity to succeed. Ag producers across this country rely on robust negotiated cash sales because they are building blocks of price discovery no matter what region of the country you are in. Our proposal makes important market reforms to prevent certain regions of the country from shouldering the burden of cash sales. I am pleased to have growing support for our legislation and I am fully committed to getting this done,” said Senator Fischer, a member of the Senate Agriculture Committee.

“I frequently hear from Iowa’s independent cattle producers about their struggle to get a fair price for their cattle while the nation’s four largest packers operate in the shadows. I pushed for hearings in the Senate’s Agriculture and Judiciary committees to shine a light on the market unfairness and now have partnered with a bipartisan group of senators to develop a solution. Our proposal takes several steps to improve cattle price transparency and will make much-needed market reforms to help independent producers in Iowa and across the country. This bipartisan bill is the best opportunity we have to make real reform in the cattle market this year and I’ll continue to work with my colleagues to get this across the finish line,” said Senator Grassley, a member of the Senate Agriculture Committee and ranking member of the Senate Judiciary Committee.

“Consolidation and a lack of transparency in the meatpacking industry have driven up costs for consumers, and lowered margins for Montana’s cow calf operators. This legislation will help feeders and producers get fairer prices through cash negotiations, and will shed light on all cattle transactions in a highly consolidated market. Fairer prices and increased transparency are how we lower consumer costs and ensure that Montana’s producers are getting a fair shake,” said Senator Tester.

“Despite the important role family ranchers in Oregon play in keeping their local economies going and making sure families across America have access to good, quality beef, the cattle market is unfairly tilted to deliver big for corporate meat packers and leave family ranchers behind. It's time to restore market fairness, efficiency and transparency so family ranchers like the ones in my state can grow their small businesses and keep affordable, quality food on the tables of Americans everywhere,” said Senator Wyden.

The Cattle Price Discovery and Transparency Act will:
-    Establish regional mandatory minimum thresholds of negotiated cash and negotiated grid trades based on each region’s 18-month average trade to enable price discovery in cattle marketing regions. In order to establish regionally sufficient levels of negotiated cash and negotiated grid trade, the Secretary of Agriculture, in consultation with the Chief Economist, would seek public comment on those levels, set the minimums, and then implement them. No regional minimum level can be more than three times that of the lowest regional minimum, and no regional minimum can be lower than the 18-month average trade at the time the bill is enacted.

-    Require the U.S. Department of Agriculture (USDA) to create and maintain a publicly available library of marketing contracts between packers and producers in a manner that ensures confidentiality.

-    Prohibit the USDA from using confidentiality as a justification for not reporting and make clear that USDA must report all Livestock Mandatory Reporting information, and they must do so in a manner that ensures confidentiality.

-    Require more timely reporting of cattle carcass weights as well as require a packer to report the number of cattle scheduled to be delivered for slaughter each day for the next 14 days.

The following groups have endorsed the bill: American Farm Bureau, U.S. Cattlemen’s Association, National Farmers Union, and National Grange.



Extension land management, farm resiliency workshops planned statewide

The University of Nebraska-Lincoln’s Center for Agricultural Profitability has scheduled a series of land management workshops to address the financial resiliency necessary for agricultural operations to sustain risk while remaining profitable.  

“Building Farm and Ranch Resiliency in the Age of Financial Uncertainty” will be presented at 19 locations across Nebraska between December and February. The workshops will cover cash rental rates, land values, leasing strategies, landlord-tenant communication, farm and ranch succession planning and an overview of farm programs for landowners.  

They will be presented by Nebraska Extension educators, who will help operators and landowners to understand financial trends to minimize shocks, develop strategies to facilitate transition, mitigate legal risks and utilize effective management practices to reduce uncertainty.  

Workshop schedule, with registration phone numbers (all times local):  
    Lincoln: Dec. 1, 10:30 a.m.-2 p.m - Lancaster County Extension Office, 402-441-7180.
    West Point: Dec. 14, 1-4 p.m. (Nielsen Center, 200 Anna Stalp Ave.), 402-372-6006.
    Wayne: Dec. 15, 9 a.m.-noon (Wayne Fire Hall, 510 Tomar Drive), 402-375-3310.
    Bloomfield: Dec. 15, 1-4 p.m. (Community Center, 101 S. Broadway St.), 402-254-6821.
    Syracuse: Dec. 20, 1-4 p.m. (Fair Center, 135 Plum St.), 402-269-2301.
    Beatrice: Dec. 21, 9 a.m.-noon (Gage County Extension Office, 1115 W. Scott St.), 402-223-1384.
    Kimball: Jan. 10, 2:30-4:30 p.m. (Kimball County Fairgrounds, High School St. & 6th St.), 308-235-3122.
    Sidney: Jan. 11, 9 a.m.-noon (Security First Bank, 1205 Jackson St.), 308-254-4455.
    Alliance: Jan. 11, 1-4 p.m. (Alliance City Library, 1750 Sweetwater Ave., #101), 308-762-5616.
    Scottsbluff: Jan. 12, 9 a.m.-noon (Panhandle Research, Extension and Education Center, 4502 Ave. I), 308-632-1230.
    Burwell: Jan. 18, 9 a.m.-noon (Senior Citizens Center, 411 Grand Ave.), 308-346-4200.
    O’Neill: Jan. 18, 1-4 p.m. (Holt County Extension Office, 402-336-2760), 402-336-2760.
    Ashland: Jan. 31, 1-4 p.m. (Round the Bend, 30801 E. Park Highway), 402-267-2205.
    Broken Bow: Feb. 1, 1-4 p.m. (Custer County Fairgrounds, 4-H Building, 44100 Memorial Drive), 308-872-6831.
    Kearney: Feb. 2, 9 a.m.-noon (Buffalo County Extension Office, 1400 E. 34th St.), 308-236-1235.
    McCook: Feb. 2, 1-4 p.m. (Red Willow County Fairgrounds, 4-H Building, W. 5th St.), 308-268-3105.
    Grant: Feb. 3, 9 a.m.-noon (Perkins County Extension Office, 6025 Road 329), 308-352-4340.
    Fullerton: Feb. 7, 1-4 p.m. (Nance County Fairgrounds, 406 N. Ida), 308-536-2691.
    Geneva: Feb. 8, 9 a.m.-noon (Fillmore County Fairgrounds, Ag Hall), 402-759-3712.

Each meeting is free to attend and expected to last approximately three hours. Virtual options will be announced for some locations. Registration is required with the local county extension office by one day prior to each workshop. More information is available on the Center for Agricultural Profitability’s website, https://cap.unl.edu.



Extension to hold virtual record-keeping course for farm and ranch in January

The next session of “Know Your Numbers, Know Your Options,” Nebraska Extension’s four-part record-keeping course, will be held virtually from 6:30 to 8:30 p.m. Central time on Jan. 18, 20, 25 and 27.

Participants should plan on attending each of the four workshop dates. The course requires participants to have an internet connection.

This course is designed to help farmers and ranchers understand their current financial position and how big decisions like large purchases, new leases or changes in production will affect their bottom line. Participants will work through the financial statements of a case study farm, watching pre-recorded videos, completing assignments and participating in video chats. Upon completion of this program, participants will have a better understanding of how financial records can be used to make decisions and confidently discuss their financial position with their family, business partners and lenders.

The course fee is $20 per participant and class size is limited to 20 people. Register online at https://wia.unl.edu/know.  Registration closes Jan. 11.

This material is based upon work supported by USDA/NIFA under Award Number 2020-70028-32728.



Pasture, Rangeland, Forage Insurance Applications Due December 1 for 2022 Coverage
Jay Parsons, NE Extension Farm and Ranch Management Specialist

As 2021 has illustrated, low precipitation or drought conditions regularly remind livestock producers dependent upon perennial grass production that one of their major risks is difficult to control. However, tools like the Pasture, Rangeland, Forage (PRF) insurance program, administered by the USDA Risk Management Agency (RMA), can help mitigate the financial impact of this risk on the producer’s bottom line. PRF is available for purchase from crop insurance agents with coverage available on a calendar year basis. The signup deadline for calendar year 2022 coverage is Dec. 1, 2021.  

PRF insurance is a group insurance policy based on grids 0.25 degrees longitude by 0.25 degrees latitude. It uses precipitation data from the National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC), providing producers with the opportunity to insure 70% to 90% of the Expected Grid Index Precipitation across a series of two-month intervals dispersed throughout the calendar year. Premium subsidies range from 51% to 59%, depending upon the coverage level selected.

If precipitation falls below the insured coverage level, the producer receives an insurance indemnity payment for the productive value of the difference. For example, suppose a producer in Custer County, Nebraska, insured a thousand acres of grass at the county base productive value of $45.80 per acre at the 90% coverage level and distributes their coverage throughout the year. If the precipitation index turns out to be less than 90% of normal, then the producer indemnity calculation multiplies the index shortfall by the policy protection for that interval period. For May-June, this example calculates an indemnity payment of (90-52.4)*8,244 = $3,444. To date, this example has generated enough indemnity ($4.29 per acre) to cover the producer premium for the year ($3.96 per acre) with two intervals still to be determined (Sep-Oct and Nov-Dec).

In calendar year 2021, Nebraska producers insured a record 3.55 million acres with PRF insurance. The average number of acres covered per policy was 2,040, with an average producer premium per policy of $4,834, or $2.37 per acre. With actual index values yet to be determined for several coverage intervals, 79% of policies earning premiums in Nebraska have earned some indemnity payment. To date, the average indemnity per policy is $6,174, or $3.03 per acre. The producer loss ratio to date is 1.28, indicating for every $1 of producer premium, indemnity payments of $1.28 have accrued in 2021.

For the full calendar year of 2020, the producer loss ratio for the state was 2.88. The producer loss ratio was higher for the Panhandle than it was for the other regions of the state but, overall, the producer loss ratios across the state for 2020 was quite high, as one would expect in a relatively dry year. However, results can obviously vary year to year. For example, the producer loss ratios for Nebraska in 2018 and 2019 were 0.44 and 0.60, respectively.

With the Dec. 1 signup deadline date quickly approaching, producers interested in purchasing PRF for the 2022 calendar year should contact their crop insurance as soon as possible to begin the application process. For more information on PRF insurance visit: http://www.rma.usda.gov.



Fall Grazing of Alfalfa
– Jerry Volesky, NE Extension Forage Specialist
 
In the fall, a common question is: “when Is my alfalfa safe to graze?”  There can be several different scenarios from which it comes.  Usually corn stalks are ready to be grazed.  It would be convenient and useful to include an adjacent alfalfa field for extra grazing and protein.  Another scenario has grazing ending on summer range, but the final growth of alfalfa is still standing in the field.  A side benefit is that grazing alfalfa in late fall or winter can reduce alfalfa weevil infestations by removing stems and plant parts that serve as a wintering site or a spring laying site for weevil eggs.
 
Even though it is mid-November, alfalfa is still quite green, despite several nights with low temperatures in the twenties.  There may be some wilting and yellowing, especially on the top, but most leaves still are attached to the plant stems.
 
The real question often being asked is “Can I be sure my cows won’t bloat if they graze my alfalfa?”.  To be quite honest, you never can be 100 percent certain that alfalfa won’t cause bloat.  Bloat occurs in ruminant livestock when gas produced during fermentation becomes trapped inside the rumen.
 
Bloat risk is much lower a week after a hard freeze that causes wilting.  But always use good management methods to reduce the risk further.  Have cows full before turning out to alfalfa.  Wait until mid-day, after frost or dew is gone, before turning out.  Provide other dry, palatable feeds or even bloat retardants.  And keep a close eye on them for the first couple days.
 
Alfalfa can be grazed safely.  Just be careful and realistic.



Crop Advantage Series Will Help Producers Make Smart Decisions for 2022 Growing Season

The 2022 Crop Advantage meetings will give producers a solid foundation of current research-based crop production information to help make smart, informed decisions for their farming operation.

The meetings are an opportunity for farmers and crop advisers to hear current research and crop production information from Iowa State University Extension and Outreach. Specialists will travel to 14 locations around Iowa from Jan. 4-27, providing updated management options and recommendations on crop production issues facing Iowa growers.

Meetings include continuing education credits for Certified Crop Advisers and pesticide applicator recertification. All sites offer private pesticide applicator continuing instruction, which is included in the registration fee. The Chariton location also offers commercial ag pesticide applicator continuing instruction for an additional cost.

“There is no other program in our crop production education year where we are able to bring this many extension specialists together to sites across the state,” said Meaghan Anderson, field agronomist with ISU Extension and Outreach. “We’re especially excited to return this winter with the same quality, in-person education farmers have come to expect.”

Nearly 2,000 individuals attended one of 14 Crop Advantage meetings across the state in 2020, representing all 99 Iowa counties and surrounding states. Approximately 85% of attendees said information from Crop Advantage would likely save them between $5 and $20 per acre.

“Our goal is always to prepare producers to manage potential issues when they arise, or even before they arise, by sharing the most up-to-date scientific knowledge from Iowa State University researchers,” said Anderson. “Each location’s program is unique as content is driven by local needs and production issues.”

Program topics vary by location and are selected for regional issues. Topics on this year’s agenda include: crop market outlook for 2022, precipitation and weather variability trends, corn rootworm management, managing cover crops before corn, fertilizer management for 2022, management of corn and soybean disease issues, tax law changes and many more.

Financial support for this farmer-focused meeting series is provided by the Iowa Soybean Association and the Iowa Corn Growers Association.

“The ISU Crop Advantage Series is a tool farmers can use to make informed decisions, which can lead to the ultimate goal of increased profitability for Iowa’s corn farmers,” said Lance Lillibridge, Iowa Corn Growers Association president and farmer from Vinton, Iowa. “ICGA is a proud sponsor of the series and encourages farmers to attend a meeting to capitalize from current research-based crop production information.”

“Now more than ever, farmers recognize the importance of connectivity in agriculture,” said Robb Ewoldt, Iowa Soybean Association president and soybean farmer from Davenport. “The return of in-person Crop Advantage meetings across the state are a welcomed sign for soybean growers looking to connect on the latest in crop production. I look forward to seeing soybean growers benefit from attending.”

Locations, times and program details are available online http://www.aep.iastate.edu/cas/.
2022 Meeting Dates and Locations
    Jan. 4 – Sheldon.
    Jan. 5 – Storm Lake.
    Jan. 6 – Burlington.
    Jan. 11 – Okoboji.
    Jan. 12 – Ankeny.
    Jan. 13 – Cedar Falls.
    Jan. 14 – Mason City.
    Jan. 18 – Chariton.
    Jan. 19 – Webster City.
    Jan. 20 – Atlantic.
    Jan. 21 – Davenport.
    Jan. 25 – Coralville.
    Jan. 26 – Le Mars.
    Jan. 27 – Denison.

Early registration for each location is $60; late registration made less than seven days prior to the meeting, or on-site, is $75. Registration includes lunch, private pesticide applicator recertification, and CCA credits.

Online registration and additional information is available at www.cropadvantage.org. For questions, contact ANR Program Services at 515-294-6429, or anr@iastate.edu, or contact your regional Iowa State University Extension and Outreach field agronomist.



GROWMARK and CHS Announce – Cooperative Ventures Aimed at Ag Tech Startups

GROWMARK and CHS today announced the formation of Cooperative Ventures, a new capital fund that will focus on creating advancements in breakthrough technologies for the agriculture industry. The fund will provide differentiated value to startups in the agricultural ecosystem by leveraging the expansive, connected networks, unparalleled access to the farmgate and proven success of the two agricultural cooperatives. Both companies will be equal partners in the $50 million fund, which will be established as its own separate legal entity.

The combined markets of the two companies cover millions of acres and thousands of farmers that will create an industry-leading test field for products and services within North America. The fund has identified three core investment areas, or "Fields of Play," to maximize the impact of each investment: crop production, supply chain, and sustainability.

"This is a terrific opportunity to act cooperatively by working together on a venture meaningful to agriculture and our corresponding supply chains," said GROWMARK CEO Jim Spradlin. "Both GROWMARK and CHS have trusted relationships and expertise within our networks, which will provide tremendous value for technology startups and ultimately benefit our respective customers. This is a natural evolution of GROWMARK's AgValidity trial and testing program."

"This partnership will help accelerate technology solutions to existing and emerging challenges in agriculture and is yet another way CHS creates connections to empower agriculture," said Jay Debertin, president and CEO of CHS Inc. "Our ongoing commitment to investment in growth and innovation for the benefit of CHS owners and the cooperative system further places CHS and GROWMARK at the forefront of cutting-edge technology solutions by leveraging our deep expertise and strong connections with farmer-owners."

GROWMARK and CHS will provide tech startups unprecedented access to robust distribution capabilities within multiple value chains, allowing for opportunities to test and refine at different scales. Having cooperative member-owners and customers within the same ecosystem will take these innovative ideas to a new level to create shareholder value and customer-focused solutions.

Special attention will be paid to the startup's strategic fit with both GROWMARK and CHS. Other factors will be based on their drive to lead in the startup space, the ability to deliver value and quality, the experience of management, and ultimately the ability to take a product or service to market. Cooperative Ventures will be comprised of teams based out of Bloomington, Illinois, and St. Paul, Minnesota.



Weekly Ethanol Production for 11/12/2021

According to EIA data analyzed by the Renewable Fuels Association for the week ending November 12, ethanol production scaled up by 21,000 barrels per day (b/d), or 2.0%, to 1.060 million b/d. This is equivalent to 44.52 million gallons daily. Production was 10.2% above the same week last year, which was affected by the pandemic, and 2.6% greater than the same week in 2019. However, the four-week average ethanol production volume decreased 0.8% to 1.078 million b/d, equivalent to an annualized rate of 16.53 billion gallons (bg).

Ethanol stocks declined 1.0% to 20.1 million barrels. Stocks were 0.6% below the year-ago level and 2.1% lower than the same week in 2019. Inventories thinned across all regions except the Midwest (PADD 2) and Gulf Coast (PADD 3).
                                                                                                              
The volume of gasoline supplied to the U.S. market, a measure of implied demand, dipped 0.2% to 9.24 million b/d (141.66 bg annualized). Gasoline demand was 11.9% above a year ago and 0.5% more than the same week in 2019.

Refiner/blender net inputs of ethanol increased 0.6% to 898,000 b/d, equivalent to 13.77 bg annualized. Net inputs were 10.5% above a year ago but 3.3% less than the same week in 2019.

There were zero imports of ethanol recorded for the third consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of September 2021.)



Nitrogen Fertilizers Extend Record Price Streak  

Anhydrous, urea, UAN28 and UAN32 set new all-time highs this week, according to prices tracked by DTN for the second week of November. The average price of 10-34-0, a starter fertilizer for corn, jumped 10% from last month, which is notable because it hasn't seen many double-digit percentage gains during this fall rally in retail prices.

All but one of the major fertilizers tracked by DTN posted a significant price change compared to the prior month, which DTN considers 5% or more.

Anhydrous led the way with an average price of $1,162 per ton, up 33% from last month.

UAN28 was 28% higher at $566/ton, while UAN32 was 26% higher at $614/ton.

Urea, up 16% compared to last month, cost an average of $832/ton.

Recently, 10-34-0 prices have been the tortoise in this race to higher prices, but compared to last month, the starter fertilizer saw a sizeable 10% gain to $719/ton. While that's nowhere near the record of $1,250/ton set in November 2008, it's the highest since early June 2012.

Potash, with an average price of $762/ton, gained 7% from last month.

Phosphate fertilizers showed the lowest month-over-month gains, with MAP prices climbing 5% to $906/ton and DAP prices increasing by 3% to $821/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.90/lb.N, anhydrous $0.71/lb.N, UAN28 $1.01/lb.N and UAN32 $0.96/lb.N.

All eight fertilizers are higher in price than a year ago. Nitrogen fertilizers show the largest increases. Anhydrous is 175% more expensive, UAN28 costs 172% more, UAN32 is up 147% and urea is 133% higher. Farmers are paying 129% more for potash, 87% more for MAP, 81% more for DAP and 58% more for 10-34-0.




Warren County Planned Location for Facility Resulting in More Than 1,300 New Jobs and $1 Billion in Economic Impact

The Greater Warren County Economic Development Council (GWCEDC) and the Warren County Commission are pleased to announce that Warren County, Missouri, has been selected by American Foods Group (AFG) as the planned location of a new state-of-the-art 2,400-head-per-day beef-processing facility, pending final approval. The company’s new facility would be on a site in Warren County located near Archer Road and Veterans Memorial Parkway.

“American Foods Group is a phenomenal, family-owned, U.S.-based company that is highly respected throughout the animal industry and in the communities where they live and work,” said Warren County Presiding Commissioner Joe Gildehaus. “The company is committed to being a good neighbor. We want to thank the Greater Warren County Economic Development Council for leading this exciting project on our behalf. We will also continue working with Greater St. Louis, Inc., Missouri Partnership and the Missouri Department of Economic Development as this project moves forward.”

“Missouri is able to compete for projects of this magnitude because of our strong agriculture community and business-friendly economy,” said Governor Mike Parson. “As a third-generation farmer and cattleman myself, I know how beneficial having a company like American Foods Group in Warren County will be for Missouri’s farmers and consumers. We are excited that Missouri is the planned location and remain committed to supporting the company as this project continues to develop in our state.”

“We are looking forward to welcoming American Foods Group to Missouri,” said Missouri Department of Agriculture Director Chris Chinn. “We appreciate their commitment to agriculture and their interest in Warren County. This project would offer an important additional market for our producers and add value to Missouri farms and ranches. All sectors of agriculture will benefit from this important addition to our state.”

“We have been impressed by Warren County and the potential opportunity to become a part of that community,” said AFG Executive Vice President Jim Rathke. “The process will take some time, but we feel very good about what we have seen in Warren County, Missouri.”

“Warren County is excited about the potential for American Foods Group to expand into our area,” said GWCEDC Chairman Gregg Klinginsmith. “Economic development is a priority for our community, and it is exciting to see what we can achieve when we work collaboratively for that purpose. Attracting food production and value-added agriculture companies supports and bolsters our local farmers. Our area’s strong agricultural heritage has been a priority for GWCEDC.”

The GWCEDC and Warren County began working with AFG in spring 2021 as the company evaluated locations in multiple states. The company intends to make a final decision on the project by spring 2022 and be fully operational at a new location by the end of 2024.

“This is a great, community-focused company that would create more than 1,300 new jobs for our region at a wage above the Warren County average,” said Steve Etcher, Business Development Director for GWCEDC. “The company would potentially invest $450 million in our region, increasing our county’s property tax revenue, which will provide significant funding for our school district and other tax-supported entities. We expect a total positive economic impact of approximately $1 billion for our region, and an annual payroll of more than $80 million to support our local businesses.”

“This is an extremely exciting and impactful project for Warren County and the entire state,” said Subash Alias, Chief Executive Officer of Missouri Partnership. “Warren County and our partners in Missouri worked hard to compete with other states for this signature project. Missouri is known for its strengths in ag-tech and food solutions, and when you combine that with our central location and competitive edge, it makes our state very appealing to leading companies like American Foods Group.”

“The STL 2030 Jobs Plan specifically highlights the critical role the region plays in global agriculture, noting that 50% of U.S. crops and livestock are produced within 500 miles of the greater metropolitan St. Louis area,” said Jason Hall, the Chief Executive Officer of Greater St. Louis, Inc. “This investment in good-paying jobs in the St. Louis metro directly advances priorities outlined in the plan and further demonstrates our global agricultural leadership. We will continue to work with partners in Warren County, Governor Parson and his administration, and everyone involved to support the company and make this win a long-term success.”

“The beef industry is a huge part of Missouri’s economy and locating a processing facility in Warren County makes perfect sense,” said Mike Deering, Executive Vice President of the Missouri Cattlemen’s Association. “Bringing processing this close to cattle production reduces the costs and energy needed, and it is good for Missouri cattle producers and consumers.”

Warren County and the state of Missouri will be evaluating potential partnership strategies that would help facilitate the location of the facility. That process is expected to be completed in spring 2022.



National Biodiesel Board elects new Governing Board

The National Biodiesel Board returned to in-person discussions this week in Washington, D.C., electing new Governing Board leaders as one act of business. The elected leaders span the biodiesel and renewable diesel industry, an important strategy as the trade association steps into its fourth decade and the organization moves to rebrand itself to represent biodiesel, renewable diesel and sustainable aviation fuel.

"This year will be critical to have strong leadership guiding our organization as we evolve to showcase all of the fuels we represent,” NBB CEO Donnell Rehagen said. “The country is demanding cleaner burning transportation and home heating fuels to reduce GHG emissions and NBB’s Governing Board will continue to play a critical role in navigating this exciting time for our industry."

Following a vote by NBB members, the following individuals will serve two-year terms:
    Chad Stone, Renewable Energy Group, Inc.
    Chris Hill, Minnesota Soybean Research and Promotion Council
    Dave Walton, Iowa Soybean Association
    Harry Simpson, Crimson Renewable Energy LLC
    Kent Engelbrecht, ADM
    Mike Devine, World Energy
    Ryan Pederson, North Dakota Soybean Council

Greg Anderson, Tom Brooks, Tim Keaveney, Gary Louis, Mike Rath, Rob Shaffer, Robert Stobaugh and Paul Teta remain on the board. The board elected Chad Stone as Chair, Mike Rath as Vice Chair, Rob Shaffer as 2nd Vice Chair, Harry Simpson as Treasurer, and Ryan Pederson as Secretary. Kent Engelbrecht continues his role as Past Chair.

NBB’s membership continues to diversify, with members representing the entire supply chain from feedstock production and processing to market development and fuel supply. The organization will celebrate three decades of success during its 30th anniversary in 2022 during the National Biodiesel Annual Conference & Expo.

"We’ve accomplished so much thanks to dedicated board members  ̶  thank you doesn’t seem to do it justice,” Rehagen said. “Throughout our organization’s history, we’ve helped the industry overcome challenges and set a path forward toward a strong future. That would not have been possible without the leadership of our board and their ability to represent members’ perspectives from across the country."



Vietnam Confirms Tariff Cut on U.S. Pork

Vietnam has confirmed it will lower its Most Favored Nation (MFN) tariff on imported frozen pork to 10 from 15 percent. The reduction is expected to be implemented on July 1, 2022. Getting better market access to Vietnam, a major pork-consuming country, has been a top trade priority for the National Pork Producers Council.

Late last year, NPPC Assistant Vice President of International Affairs Maria Zieba testified on the importance to U.S. pork producers of the Vietnamese market and urged the Trump administration not to impose U.S. tariffs on goods from Vietnam over that country’s alleged currency manipulation. NPPC led recent efforts, including a letter from 70 members of Congress, asking U.S. Trade Representative Katherine Tai to press Vietnam to eliminate tariffs on U.S. pork.

“We thank the lawmakers, led by Reps. Ron Kind (D-Wis.), Darin LaHood (R-Ill.), Jim Costa (D-Calif.) and Dusty Johnson (R-S.D.), for their support in recognizing the importance of the Vietnamese market to U.S. pork producers,” said NPPC President Jen Sorenson. “Vietnam consumes a lot of pork, but it has been dealing with African swine fever. That has decimated its domestic pork production and increased its reliance on imported pork. The tariff cut will let us send more product to Vietnam to fill its need.”

While the rate reduction will help, because the United States does not have a free trade agreement with Vietnam, the U.S. pork industry remains at a competitive disadvantage to pork-supplying countries that do, including the European Union, Russia and nations in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. CPTPP countries, for example, have a duty of only 7.5 percent on frozen pork exports going to Vietnam.

Because of Vietnam’s high tariff on and non-tariff barriers to U.S. pork and the lack of a free trade agreement or preferential trade deal between the United States and Vietnam, the U.S. pork industry shipped only about 25,000 metric tons of pork worth $54 million to Vietnam in 2020. For comparison, although Vietnam consumes more pork than Mexico – the U.S. pork industry’s No. 2 export market by volume and a member of the U.S.-Mexico-Canada Agreement – the United States exported more than 735,000 metric tons valued at $1.2 billion to Mexico last year.

NPPC has been urging the administration, which helped facilitate Vietnam’s tariff reduction, to join the 11-nation CPTPP. The United States was part of that trade pact’s predecessor, the Trans-Pacific Partnership, which NPPC strongly supported, but the Trump administration withdrew from the deal before it was finalized. (TPP became the CPTPP after the United States dropped out of the former.)



NMPF Touts Dairy’s Policy Gains in Annual Meeting

NMPF Chairman Randy Mooney and President and CEO Jim Mulhern touted dairy’s gains in 2021 at NMPF’s joint annual meeting Nov. 15-17, as record exports and per-capita U.S. consumption at a more than 60-year high point to a bright future for the industry.

“The past 20-plus months have shown us that life can change quickly, and in ways beyond our control,” said Mooney, a dairy farmer from Rogersville, Missouri, in remarks before dairy-farmer leaders from NMPF’s 24 member cooperatives. “It’s also shown that when that happens, people turn to what they know and trust. They turn to dairy.”

NMPF joined with the National Dairy Promotion and Research Board and the United Dairy Industry Association in the theme of “Make Every Drop Count,” returning to an in-person gathering this year as industry challenges evolve.

NMPF President and Chief Executive Officer Jim Mulhern highlighted NMPF’s work for its members in his remarks, including leading policy efforts that brought more than $6 billion in federal aid to dairy farmers at the height of the COVID-19 pandemic as well as regulatory initiatives and advances in trade.

“We are ‘The Voice of Dairy Farmers in Our Nation’s Capital,’ and we take that mission very seriously. And through our experience over the past year and a half, I know we are well-positioned to meet the many challenges that lie ahead,” Mulhern said. “When we are strategic, patient, and act with intelligence, and realistic expectations, we can meet our challenges.”

Deputy Agriculture Secretary Jewel Bronaugh also spoke to the meeting via video, highlighting dairy’s leadership in climate-smart agriculture initiatives and environmental stewardship.

“It is inspiring to see the dairy industry as leaders in advancing solutions to the challenges we face in agriculture through inclusive, accessible innovation technology and approaches,” she said. “You are leading the way as United States dairy embraces a 2050 Net Zero Initiative to help dairy farms of all geographies and sizes continue to implement new technologies and adopt economically viable practices in feed production, animal care, energy efficiency and manure management.”

Also providing remarks via video were Sen. Debbie Stabenow, D-MI, chairwoman of the Senate Agriculture Committee; Rep. G.T. Thompson, R-PA, ranking member of the House Agriculture Committee; and Sen. Mike Crapo, R-ID.

NMPF also held governance meetings and revived its annual, nationally recognized cheese contest – successfully conducted virtually last year – as an in-person celebration. Results here.

Mooney was reelected Chair of the organization, and Dave Scheevel of Foremost Farms was reelected Treasurer. New officers including Simon Vander Woude of California Dairies, Inc., First Vice Chair; Cricket Jacquier of Agri-Mark, Second Vice Chair; and Jay Bryant of Maryland-Virginia Milk Producers, Secretary.

Those five officers are joined ten others elected this week to NMPF’s Executive Committee:

Steve Schlangen, Associated Milk Producers, Inc.; Rob Vandenheuvel, California Dairies, Inc.; Melvin Medeiros, Dairy Farmers of America; Dennis Rodenbaugh, Dairy Farmers of America; Pete Kappelman, Land O’Lakes; Doug Chapin, Michigan Milk Producers Assn.; Allan Huttema, Northwest Dairy Association; Tony Graves, Prairie Farms Dairy; Craig Caballero, United Dairymen of Arizona; and Jimmy Kerr, Cooperative Milk Producers.

New directors elected to the Board of Directors approved by NMPF delegates in 2021 include:
    Neil Zwart – California Dairies, Inc.
    Travis Fogler – Dairy Farmers of America
    Ed Gallagher – Dairy Farmers of America
    Karen Jordan – Dairy Farmers of America
    Melvin Medeiros – Dairy Farmers of America
    Perry Tjaarda – Dairy Farmers of America
    Greg Schlafer – Foremost Farms
    Duane Hershey – Land O’Lakes
    Doug Chapin – Michigan Milk Producers Assoc.
    Tony Freeman – Northwest Dairy Association
    Joe Jenck – Tillamook County Creamery Assoc.
    Craig Caballero – United Dairymen of Arizona

NMPF also recognized two retiring board members, Greg Wickham of Dairy Farmers of America and Ken Nobis of Michigan Milk Producers Association, as Honorary Directors for Life.

NMPF also held its annual Young Cooperators gathering in conjunction with the annual meeting.



October Adds Additional Challenges to Organic Soybean Meal Trade

The hits keep coming for U.S.-India organic trade -- that’s the takeaway from Mercaris this month on the cusp of a number of changes in October out of India. The impacts came in late October when the Indian Agricultural and Processed Food Products Export Development Authority (APEDA) barred four organic certifying agencies from registering any new processors or exporters of organic products, while also issuing a year-long suspension of OneCert International.

The other agencies affected were CU Inspections India Pvt Ltd, ECOCERT India Pvt Ltd, Indian Organic Certification Agency, Aditi Organic Certifications Pvt Ltd.

Mercaris notes that the APEDA announcement followed a decision by the European Union, but has global implications.

“The EU issued a blacklist to these organizations on the grounds of failing to meet regulatory standards,” says Ryan Koory, Vice President of Economics for Mercaris. “In an average year, this decision by ADEPA alone would have put strain on U.S. organic trade with India. Combining this decision with the other events of 2021, it is especially biting and will likely interfere with re-certification efforts already happening.”

The National Organic Program (NOP) is requiring all Indian operations s recertify through an NOP recognized organization by July 12, 2022 if they wish to continue selling organic productions in the United States.  Of note, Mercaris review of NOP’s Organic Integrity database found only 53% of the 1,172 India-based organic operations listed were certified through one of these organizations.

In addition to the recertification issues, the U.S. Department of Commerce (DOC) also released a Decision Memorandum regarding the anti-dumping duty (ADD) portion of its investigation of organic soybean meal from India.

“This announcement was a critical piece in anticipating the tariff rate for U.S. soybean meal imports from India going forward,” adds Koory. “The recent announcement determined Indian sourced organic soybean meal is likely being sold in U.S. markets at less than fair market value, thus warranting an ADD in addition to countervailing duties.”



Bayer, Microsoft enter into strategic partnership to advance digital capabilities for food value chain    

Today, Bayer announced a strategic partnership with Microsoft to build a new cloud-based set of digital tools and data science solutions for use in agriculture and adjacent industries, bringing new infrastructure and foundational capabilities to accelerate innovation, boost efficiency and support sustainability across value chains.

Agriculture and agribusinesses today benefit from a wide range of digital tools and data-powered insights through platforms like Bayer’s Climate FieldView™ – used today on more than 180 million farming acres across more than 20 countries. Still, there is work to do to optimize the entire food, feed, fuel and fiber value chain and its use of the precious natural resources required to power the planet while ensuring broader efforts to combat climate change. Under the agreement, Bayer will work with Microsoft to co-develop new solutions that address critical industry scenarios such as farming operations, sustainable sourcing, manufacturing and supply chain improvement, and ESG monitoring and measurement.

The companies will do this by developing the go-forward infrastructure for digital farming solutions and data science capabilities. These new solutions and capabilities will be available to businesses – from startups to global enterprises – in agriculture and adjacent industries for use in their own offerings. Bayer will also migrate its digital farming core capabilities to the new infrastructure for its own customer-facing solutions. The partnership builds upon a longstanding relationship between Bayer and Microsoft, and a shared commitment to data privacy, cyber security and customer trust.

“This partnership comes at a unique point in time where increased innovation is sorely needed across the food and fiber value chain,” said Liam Condon, Member of the Board of Management of Bayer AG and President of Bayer Crop Science. “As we cope with an ongoing global pandemic, fragile supply chains and the continuing climate catastrophe, status quo will not suffice. We need collaboration, shared vision and action. For those reasons, Bayer and Microsoft are taking action to make a positive impact, both through our own collaboration as well as by offering off-the-shelf infrastructure and digital capabilities for other companies to address the enormous challenges facing our society.”

“As agriculture and technology entrepreneurs and organizations work to advance the security and sustainability of the value chain – supporting farmers at its foundation – collaboration is required,” said Jeremy Williams, Head of The Climate Corporation and Bayer Digital Farming Solutions. “Bayer is pioneering digital innovation within agriculture. Microsoft is setting the standard in trusted, global cloud solutions. Together, we can innovate and implement as a team to deliver the food, feed, fiber and fuel needed to power our planet.”

“Like every industry, farming and the food sector are undergoing rapid digital transformation, from autonomous tractors, to AI-based digital advisories, and scalable precision agriculture,” said Ravi Krishnaswamy, Corporate Vice President, Azure Global Industry at Microsoft. “We’re excited to partner with Bayer to accelerate this transformation and unlock even greater agricultural innovation by bringing together data-driven insights with Bayer’s agronomic expertise and the power of Microsoft Azure.”

This partnership is a significant, strategic step forward in accomplishing Bayer’s ambitious target of 100-percent digitally enabled sales in the Crop Science division by 2030 and accelerating its ability to deliver outcomes-based, digitally enabled solutions to customers. Bayer is committed to setting a new standard for the industry in data-driven, digital innovation.